Respond to the Brown's queries below in this section of the financial plan: a) Sale of Principal
Question:
Respond to the Brown's queries below in this section of the financial plan:
a) Sale of Principal Residence The Browns informed you that they plan to sell their principal residence in 2024 and buy a condominium that year for $400,000 to live in. They would like to know if you can estimate the income tax payable on the sale of their home. Bill's marginal tax rate is 25%. Betty's marginal tax rate is 40%.
b) RRSP vs Locked-in RRSP Betty would like you to tell her if she should make her RRSP contribution this year to her regular RRSP or to her Lock-in RRSP. Betty's RRSP lost 12.4% last year. Betty's Locked-in RRSP earned a return of 6% last year. Please provide Betty with an answer.
c) Open Other Tax Deferred Account (s) Betty would also like you to tell her if there are any other tax strategies or other registered accounts that she should consider using in order to minimize the Brown's income taxes.
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow